Texas lawmakers showed mixed reactions to a Congressional Budget Office report released on Tuesday that suggests an increase in the federal hourly minimum wage from $7.25 to $10.10 could result in the elimination of 500,000 jobs from the U.S. economy.

Rep. Sheila Jackson Lee (D-Houston) pointed to the minimum wage increase as an opportunity for American workers to improve the economy and for businesses to increase productivity.

“I am completely confident that the U.S. economy has much to gain from increasing the minimum wage to $10.10,” Lee said. “As lawmakers we should feel confident that raising the minimum wage will not hurt employment and we should immediately take the steps necessary to ensure that all Americans are guaranteed a wage high enough to allow them to live with dignity and contribute positively to lasting economic growth.”

The wage increase was proposed by congressional Democrats and backed by President Obama with hopes of increasing earnings for 16.5 million people by 2016.

The non-partisan CBO report outlined the economic impact of two potential increases in hourly minimum wage: one to $10.10 with continued adjustment for inflation, and one to $9 with no adjustments for inflation.

The report said that although the increase in minimum wage to $10.10 would lift 900,000 people above the poverty line by 2016, the resulting job cuts would primarily affect low-wage workers.

The increase to a $9 hourly wage, according to the report’s findings, would reduce employment by 100,000 jobs, and allow an increase in wages for an estimated 7.6 million workers.

Rep. Kevin Brady (R-The Woodlands) opposes an increase in the federal minimum wage on the basis that business owners would be forced to cut jobs to keep their costs low.

“I spent most of this weekend meeting with small-business owners across my district, and almost without exception they told me that raising the minimum wage would make them reluctant to hire new people, and could in fact, force them to cut their workers’ hours,” Brady said. “Right now, we need jobs, not more government interference that stunts job growth and makes it difficult for small businesses to stay afloat.”

The current minimum wage, at $7.25, has been a subject of conversation in recent months, as fast food workers and other low-wage employees have advocated for a more liveable wage.

The Senate, controlled by Democrats who largely favor an increase in minimum wage, could call for a vote on legislation as early as March.

But in the House, Republicans like Brady remain strong in their belief that the increase in minimum wage at a time with such high unemployment numbers will result in continued unemployment.

“The government can’t just force local businesses to pay $5,000 more per worker and think it won’t mean fewer workers,” Brady said.